New Jersey Resources (NJR) AI Stock Analysis

• Market Cap: $4.60B
• Dividend Yield: 4.04%
• Average Volume (3M): 550.83K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.12
• Revenue Growth: 21.88%
• EPS Growth: 71.35%
• Country: US
• Employees: 1,372
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.06
• Shares Outstanding: 100,451,370
• 10 Day Avg. Volume: 601,237
• 30 Day Avg. Volume: 550,825
• PEG Ratio: 2.09
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 2.59
• P/FCF Ratio: -32.35
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: 8.25
• Enterprise Value/Ebitda: 9.45
• 1Y Price Target: $51.00
• Price Target Upside: 11.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $52.00 ▲(13.66% Upside)

New Jersey Resources scores well due to strong financial performance and positive earnings call sentiment, with increased guidance and strategic investments. Valuation metrics are favorable, indicating potential undervaluation. However, technical indicators suggest a lack of strong momentum, and cash flow management needs improvement. Regulatory and market challenges are notable risks.

Positive Factors

Revenue Growth

Strong revenue growth and profitability indicate effective operations and market demand, supporting long-term financial health.

Strategic Investments

Increased guidance and strategic investments in programs like SAVEGREEN highlight NJR's commitment to growth and operational excellence.

Renewable Energy Expansion

Expansion in renewable energy projects enhances NJR's portfolio, aligning with industry trends and diversifying revenue streams.

Negative Factors

Cash Flow Management

Negative free cash flow indicates potential liquidity issues, which could impact NJR's ability to fund operations and investments.

Regulatory Uncertainty

Regulatory uncertainties can affect NJR's operational stability and future profitability, posing risks to strategic initiatives.

Permitting Challenges

Challenges in obtaining permits for infrastructure projects may delay growth initiatives and affect system reliability improvements.

New Jersey Resources Business Overview & Revenue Model

Company Description

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 564,000 residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets. The Clean Energy Ventures segment invests in, owns, and operates commercial and residential solar projects situated in New Jersey, Connecticut, Rhode Island, and New York. The Energy Services segment offers unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Storage and Transportation segment invests in natural gas transportation and storage facilities. It provides heating, ventilation, and cooling services; holds commercial real estate properties; and offers solar equipment installation, and plumbing repair and installation services, as well as engages in the water appliance sale, installation, and servicing activities. The company was incorporated in 1981 and is headquartered in Wall, New Jersey.

How the Company Makes Money

NJR generates revenue primarily through the sale and distribution of natural gas to residential, commercial, and industrial customers in New Jersey. The company operates under a regulated utility model, which allows it to earn a return on investment based on approved rates set by the New Jersey Board of Public Utilities. Additionally, NJR earns income from its non-utility operations, including its renewable energy projects, which can provide additional revenue through power purchase agreements and tax incentives. Key partnerships with local governments and energy organizations also bolster its earnings potential, particularly in clean energy initiatives aimed at expanding the company's portfolio in the evolving energy market.

New Jersey Resources Financial Statement Overview

Summary

New Jersey Resources demonstrates strong profitability and revenue growth, supported by a solid balance sheet with manageable leverage. However, cash flow management presents challenges, particularly with negative free cash flow. The company is well-positioned in terms of profitability and equity utilization, but improving cash flow stability remains a key area for enhancement.

Income Statement

New Jersey Resources shows strong profitability with a TTM gross profit margin of 46.53% and a net profit margin of 19.64%. The company has demonstrated impressive revenue growth of 12.5% in the TTM period. EBIT and EBITDA margins are robust at 31.21% and 40.62%, respectively, indicating efficient operations. Overall, the income statement reflects solid growth and profitability.

Balance Sheet

The balance sheet indicates a moderate level of leverage with a debt-to-equity ratio of 1.47, which has improved from previous years. Return on equity is strong at 17.49%, suggesting effective use of equity capital. The equity ratio stands at 33.32%, reflecting a stable capital structure. While leverage is a potential risk, the company maintains a solid equity base.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow and a free cash flow to net income ratio of -37.66%. However, operating cash flow is positive and covers 60.85% of net income, showing some operational cash generation capability. The significant improvement in free cash flow growth rate is a positive sign, but overall cash flow management needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.10B	1.80B	1.96B	2.91B	2.16B	1.95B
Gross Profit	975.31M	696.47M	610.48M	595.16M	438.04M	370.81M
EBITDA	851.54M	666.35M	594.06M	565.01M	433.52M	370.36M
Net Income	411.68M	289.77M	264.72M	274.92M	117.89M	163.01M
Balance Sheet
Total Assets	7.27B	6.98B	6.54B	6.26B	5.72B	5.32B
Cash, Cash Equivalents and Short-Term Investments	931.00K	1.02M	954.00K	1.11M	4.75M	117.01M
Total Debt	3.56B	3.52B	3.29B	3.13B	2.76B	2.51B
Total Liabilities	4.85B	4.78B	4.55B	4.44B	4.09B	3.67B
Stockholders Equity	2.42B	2.20B	1.99B	1.82B	1.63B	1.64B
Cash Flow
Free Cash Flow	-169.35M	-143.91M	-61.93M	-274.95M	-233.66M	-256.69M
Operating Cash Flow	449.69M	427.41M	478.99M	323.48M	390.95M	213.48M
Investing Cash Flow	-482.42M	-569.07M	-538.63M	-590.61M	-622.12M	-994.02M
Financing Cash Flow	11.59M	141.76M	59.70M	262.54M	117.78M	895.90M

New Jersey Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 45.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NJR, the sentiment is Neutral. The current price of 45.75 is above the 20-day moving average (MA) of 45.54, below the 50-day MA of 46.24, and below the 200-day MA of 46.15, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 67.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NJR.

New Jersey Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	75 Outperform	$4.60B	11.18	18.03%	4.04%	21.88%	71.35%
OGS	72 Outperform	$4.91B	19.08	8.51%	3.28%	15.06%	12.27%
SR	72 Outperform	$5.29B	19.39	8.37%	3.50%	-6.65%	11.47%
CPK	68 Neutral	$3.10B	23.48	9.13%	1.99%	17.15%	15.00%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SWX	63 Neutral	$5.76B	12.44	5.42%	3.11%	-23.15%	157.45%
UGI	62 Neutral	$7.30B	17.89	8.75%	4.42%	-0.52%	-39.42%

New Jersey Resources Corporate Events

New Jersey Resources Announces Board Expansion

On September 10, 2025, New Jersey Resources announced the election of Amy B. Mansue to its Board of Directors, effective November 1, 2025, expanding the board from eleven to twelve members. Mansue, currently the President and CEO of Inspira Health Network, brings extensive experience from both the public and private sectors, which is expected to strengthen NJR’s strategic positioning and contribute to delivering long-term value for shareholders and customers.

The most recent analyst rating on (NJR) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on New Jersey Resources stock, see the NJR Stock Forecast page.

New Jersey Resources Enters Note Purchase Agreement

On August 21, 2025, NJNG entered into a Note Purchase Agreement with institutional investors, selling $200 million in senior notes to fund general corporate purposes, including refinancing debt and capital expenditures. These notes, secured by NJNG’s First Mortgage Bonds, reflect a strategic financial maneuver to bolster the company’s operational capabilities and maintain financial flexibility, while adhering to certain covenants and restrictions.

The most recent analyst rating on (NJR) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on New Jersey Resources stock, see the NJR Stock Forecast page.

New Jersey Resources Reports Mixed Fiscal 2025 Results

New Jersey Resources Corporation (NJR) is a Fortune 1000 company that provides natural gas and clean energy services through its subsidiaries, operating primarily in the energy sector with a focus on transportation, distribution, and asset management.

New Jersey Resources: Strong Growth and Positive Outlook

New Jersey Resources Corporation (NJR) recently held its earnings call, revealing a strong financial and operational performance across its business segments. The sentiment during the call was overwhelmingly positive, driven by increased fiscal guidance, substantial growth in clean energy ventures, and solid customer growth in natural gas services. Despite potential regulatory and market risks, the company’s robust achievements and strategic advancements during the quarter were well-received.

New Jersey Resources Reports Q3 2025 Financial Results

On August 4, 2025, New Jersey Resources reported its fiscal 2025 third-quarter results, revealing a consolidated net loss of $15.1 million compared to a $11.6 million loss in the same quarter of 2024. However, the company showed improvement in its net financial earnings, reporting $6.2 million in the third quarter of 2025, up from a loss of $8.9 million in the previous year. Year-to-date net income also increased significantly to $320.6 million from $198.6 million in 2024. The company raised the lower end of its fiscal 2025 net financial earnings per share guidance, reflecting strong operational resilience and the impact of a diversified business model. This adjustment underscores NJR’s confidence in achieving its long-term growth targets and delivering consistent performance for its shareholders.

The most recent analyst rating on (NJR) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on New Jersey Resources stock, see the NJR Stock Forecast page.